DMP - whats it all about

squirrel_pigeon

For some people, a DMP is far and away the best option. For others its an IVA. For others, its bankruptcy. A lot of the time, a DMP gives people the breathing space they need to consider the other options. They don't work for everyone unfortunately and because they're informal, they are relying on the goodwill of creditors to stop interest/charges/legal action. Most creditors do but there are a certain few that refuse.

In my previous job, I would look at people's creditor lists and in some cases my heart would sink as I would know that the interest would not be stopped, so I would be straight with people and start talking about the other options.

A lot of people straight out refuse to go bankrupt because they prefer to listen to the urban myths spouted by the 'man in the pub' rather than trained debt counsellors. In those cases, the fact that a DMP is an option for them at least lets them make payments.

I am determined to repay my debt on my DMP, but I won't know if that is a possibility until my Tax Credits are reassessed in April. Even though I have called them with every change of circumstances this year and they have readjusted them, I am dreading them deciding that I've done something wrong and stopping them. The problem with a DMP is that it only works when you have a surplus.

Phew... Will shut up now :P

meech78

DMP didn't work for me as i ended up having more debts than i started off with!!

I struggled for 3 years with a DMP that really did nothing for me and went BR a couple of weeks ago...in my opinion the only thing a DMP is any good for is proving to the courts that you did try to solve your debt issues before going BR...apart from that, it really isn;t worth it. If your partner has more debts than he is able to pay off in a reasinable amount of time, i would suggest he went BR...the struggle of trying to pay off your debts for the unforseable future is not worth the headache or the sleepless nights!

Obviously that is only in my opinion!:D

jodenice

and all opinions are welcome, thank you.

Weell I don't know. he's going to have £140 to pay off all of them with for two years, when it will rise to £300. his debt is about £25k. We own a property together and the counsellor said that as he would have spare money bankruptcy might not even be allowed. so at least we can try a DMP. It will take us about 8.5 years but we have been paying nearly £800 a month for about 3 years. Taking my wages out of the equation means that my money can be our spending money, although it won't be loads, it will certainly be more than the 0.001 pence we've got right now.

i'm more interested in what happens if you have creditors who will not accept it? What do they do?

What do I do if debt collection companies come knocking and I am on a DMP plan. (I say 'I' but I mean my other half, although we are in this together!)

I'm really scared.

PS He was going to borrow the amount he is in debt and funnily enough it would have halved our payments but his credit rating has gone downhill now!

fermi

There is a Dmp Mutal Support Thread on DFW that might be of use to you.

Plus there are plenty of people on DFW that are on DMP's now and who will have had the same worries as you.

jodenice

who is best - CCCS or Payplan? or both much of a muchness?

fermi

jodenice wrote: »

who is best - CCCS or Payplan? or both much of a muchness?

Much of much of a muchness as far as I've ever gathered.:D

They are both horrendously busy, but ALL the money goes to the creditors and they are well recognised by said creditors.

They are also able to give excellent advice on how to deal with creditors who are awkward in the ways that you are concerned about.

Homework

As long as you do not go to a company who charge for the service you will be in good hands.